Subsidizing Mass Adoption of Electric Vehicles: Quasi-Experimental Evidence from California

Details

• Creators:
  Muehlegger, Erich J ; Rapson, David S
• Corporate Creators:
  University of California, Davis. Department of Economics
• Corporate Contributors:
  University of California, Berkeley. Institute of Transportation Studies
• Subject/TRT Terms:
  Demand Electric Vehicles Low Income Groups Middle Income Groups Subsidies
• Publication/ Report Number:
  UC-ITS-2018-33
• DOI:
  https://doi.org/10.7922/G2DF6PDF
• Resource Type:
  Tech Report
• Geographical Coverage:
  California;United States
• Edition:
  Final Research Report (October 2017 – December 2018)
• Corporate Publisher:
  University of California, Davis. Institute of Transportation Studies
• Abstract:
  Little is known about demand for EVs in the mass market. In this paper, we exploit a natural experiment that provides variation in large EV subsidies targeted at low- and middle-income households in California. Using transaction-level data, we estimate two important policy parameters using triple differences: the subsidy elasticity of demand for EVs and the rate of subsidy passthrough. Estimates show that demand for EVs amongst low- and middle-income households is price-elastic and pass-through is complete. We use these estimates to calculate the expected subsidy bill required for California to reach its goal of 1.5 million EVs by 2025.
• Format:
  PDF
• Funding:
  UC-ITS-2018-33
• Collection(s):
  US Transportation Collection
• Main Document Checksum:
  urn:sha-512:d7f37801a0a7620c2022bca0a59b21c79a231c2f6576f5dcf60ab97005337e57f6d525f7bd9ea2555392a7022b0d586654f2b150bee16987f6974842471f43df
• Download URL:
  https://rosap.ntl.bts.gov/view/dot/68854/dot_68854_DS1.pdf
• File Type:
  [PDF - 6.23 MB ]